M&A Integration Management (Pt. 2)
When it comes to mergers and acquisitions, companies run too often on the wheel and hope the best. But here is the difference: integration looks much more like blackjack than it is roulette. You can perform a smart strategy that “stacks the cover” more often than not. Tilt the chance of success with the right culture fit, clear communication and intentional integration.
In one acquisition, the top loan officer ensured the most to describe, but the pitch of the acquiring company? “Better technology and advantage.” It doesn’t resonate. After a few weeks of struggling to make him enthusiastic about the acquisition, we introduced him to the head of your at the Acquirer’s company. She is an absolute powerhouse, and after one conversation with her his entire mentality around the acquisition turned around. The acquiring company already had what he wanted, but they first had to listen, second pitch. That is the difference between smart play and blind play.
Positioning is important. An agile luxury lender, who acquires a discount provider with rigid, centralized systems is a tough fight. Some producers thrive in a credit union model; Others want to make 150 BPS with an IMB that does standard loans. Neither is wrong, but wrong alignment leads to wear, not to integration.
What is universal is that every acquisition offers hidden resistance to change. If employees feel that they leave a “hot” table for a “cooler” dealer, they will spread. They have to see a profitable game within your company, so give them early and often to them.
Culture beats tactics every time. It is the most resilient power in every system. If you do not deliver real value, to “stack the deck”, or to make the correct strategic movements, the deal value will erode and your Legacy team will burn out.
Acquisitions do not fail when closing. They fail in integration. So don’t guess, work with an expert to create a winning strategy. Play the right game and stack the deck where you can. Move the opportunities to your advantage before you play the game.
Julia Brown is an M&A and integration professional.
This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.
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